Question: Problem 1 : Suppose that a manager needs to order a component to satisfy next week s demand. The probability that there will be x

Problem 1: Suppose that a manager needs to order a component to satisfy next weeks demand. The probability that there will be x (integer) units of demand is 1/20 where 10< x <=30.
The manager can pay $1 per unit to order some components from a regular channel in advance. If it turns out that the amount is not sufficient to satisfy all demands, the manager needs to place an expediting orders at $1.8 per unit to cover the shortage. Unused component can be sold in the second-hand market at $0.3 per unit. Determine
1.The optimal number of units that the manager should order from the regular channel;

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